Financial Math


Down payment

A down payment is an initial payment made when something is bought on credit.

Closing Cost

Closing Costs are fees paid at the closing of a real estate transaction. This point in time called the closing is when the title to the property is conveyed to the buyer. Closing costs are incurred by either the buyer or the seller.

Mortgage Loan

A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.

Renting vs. Owning

Buying- you can get a loan with 0% down. Check with your state and see if there is state funding available for purchase loans.However I would advise you to wait till you have at lease 3.5% down. You will have much better mortgage rates as compared to a lower down payment loans.

Renting- It all depends on the landlord. You can get it to a home with just 1 month of deposit and monthly rent.